Fixed assets are recognised as having a useful working life before becoming worn out or obsolete. The limited life of these assets is recognised by depreciating them over the estimated period of time.
For this assessment task, you will need to visit Australian Taxation Office (ATO) website and download information regarding depreciation rules and relevant legislations. Use the information to complete the following tasks.
Using The Information Completed In Assessment Task,
- Calculate depreciation of all non-current (fixed) assets in the Asset Register
§ Assuming that the asset will either be written off, traded or upgraded at the end of the depreciatio period, workout an appropriate disposal value.Balance day adjustments are adjustments that need to be made on some accounts at the end of the financial year, so that they accurately reflect the position of the business. These are only required when a company is using an accrual accounting system, as income or expenses may be recognised and paid/received at differenttimes. Items/data for this assessment task are drawn from the common business scenario of Bean’s Coffee as widely used across this course.
In Australia reporting of financial statements is guided by Accounting Standard AASB 101 Presentation of Financial Statements under section 334 of the Corporations Act 2001 on 24 September 2007 developed by The Australian Accounting Standards Board. This Standard prescribes the basis for presentation of general purpose financial statements and sets out overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content. Reports prepared in this task must conform to the AASM 101 standard.
Appropriate credit transfer may be granted to eligible students against each unit of competency on evidence to successful completion of the same unit in an equivalent or higher nationally endorsed qualification. Credit transfer students will finish the course in a shorter duration and are advised to consult appropriate authorities/bodies for applicable criteria if planning further study or stay in Australia. Applicants who have completed formal training or who have relevant and current work or life experience and consider they are able to meet the unit purpose may seek recognition.
Q1. What are accounting supporting documents? Give examples of at least three supporting documents that can be used in processing journals?
Q2. Give examples of at least two organisational policies and procedures that may be relevant to management of accounting systems in an organisation?
Q3. What is the role of professional bodies in maintaining the standards of accounting practices with the industry?
Q4. If you were in charge of maintaining an accounting system or records as an accounting professional, what are the things that you WILL NOT DO to maintain your professional integrity?
Q5. What are the key benefits of double entry system of accounting data in Australian accounting systems?
Q6. You have just received a payment by cheque for your services to an organisation. How would you ensure that the cheque is error-free?
Q7. A customer has returned a product he purchased a few days ago and received his refund of $230. Based on the double entry system, write the debit and credit entries to appropriate accounts;
Q8. Explain the difference between cash and accrual based accounting systems
Q9. Summarise at least five fundamental principles of The Institution of Certified Bookkeepers (ICB) Code of Conduct in your own words
Q10. List key industry and legislative instruments relevant to the practice of accountancy and bookkeeping?
Q11. Describe forms of ‘proof of lodgement’.
Q12. Describe types of ‘special transactions’.